Minimum Wage

Both federal and California law require that most workers receive at least a minimum wage for every hour they work. Effective January 1, 2008, the minimum wage in California is $8.00 per hour. Employers are required to pay at least the minimum wage, even if the worker agrees to accept less.

There are some employees who are exempt from the minimum wage law, such as outside salespersons, individuals who are the parent, spouse, or child of the employer, certain employees who are mentally or physically disabled, or both, and nonprofit organizations such as sheltered workshops or rehabilitation facilities that employ disabled workers.

Despite these long-standing and well-known laws, many employers still follow practices or policies, which intentionally or unintentionally result in their workers earning less than that minimum wage.

Damages for not paying minimum wage can be considerable – after adding in the unpaid minimum wage, interest on the unpaid wages, penalties and attorneys fees, in some cases the amount owed by the employer is more than the amount of the wages that people are paid! Minimum wage violations result in automatic double damages. California minimum wage laws provide that the employer must pay the employee’s attorneys fees – so many cases can be handled on a contingency basis. If this is done company-wide, a class action may be appropriate.